Recently HDFC Life launched one more Online Term Insurance called HDFC Click2Protect Plus. This plan has lot options which confuses many new buyers and along with that, few readers raised doubts about choosing options. So let us discuss about this in detail.
Below are the eligibility criteria of this plan.
Eligibility features I liked a more
- Minimum age at entry-Because if someone starts to earn at 25 years and looking for a term plan till his retirement age (Approximately at around 60 Yrs of age) then he can easily opt this as 25 Yrs (current age)+35 Yrs (Term of Policy)=60 yrs of age (Retirement Age).
- Usually in online term plans, you find only single premium options. However, in this plan you will find all options like Yly, Hly, Qty or Monthly too.
- Minimum Sum Assured set as Rs.25, 00,000. Even a low earning individual may also choose this plan.
Below are the various options, one can choose in this plan.
1) Life Option-
This is a typical term insurance without having any additional features. So easy to understand to all (I feel so).
2) Extra Life Option-
This is nothing but a term insurance with additional feature of accidental rider opted equal to sum assured. Below are some exclusion mentioned about accidental benefits.
- If death occurs after 180 days of the accident, then no benefit will be payable.
- This rider will not be applicable to Intentional or self-inflicted injuries or suicide, irrespective of mental health.
- In addition, one must not be Alcohol or solvent abuse, other than drugs taken under medical supervision.
- War, invasion, hostilities (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion will not be covered.
- Taking part in any flying activity, other than as a passenger in a commercially licensed aircraft
- Taking part in any act of a criminal nature with criminal intent
- Taking part or practicing for any hazardous hobby, pursuit or race unless previously agreed to by us in writing
3) Income Option-
If this option is opted and death occurs during the policy period then benefits will be available to the nominee as below.
- 10% of Sum Assured will be payable to nominee immediately.
- Rest of 90% of Sum Assured will be payable monthly as o. 5% of the death benefit for 15 Yrs.
4) Income plus Option–
If this option is opted and death occurs during the policy period then benefits will be available to the nominee as below.
- Full Sum Assured will be payable to nominee immediately after policyholder’s death.
- Along with this a monthly income will be payable to nominee at 0.5% of Sum Assured for 10 Yrs.
- In this plan, you have the option to choose flat equal monthly income for 10 years or inflated income at 10% per year.
Life Stage Protection Features-
This is one of the unique features of this plan. The idea behind this plan is, as you grow older your financial responsibilities will also grow. So need additional insurance to cover those responsibilities. Hence, instead of buying the insurance at that stage, this option provides in built options once you enter to those life stages. At the same time once your financial responsibilities finished, then you can decrease them and bring it back to the initial term insurance you opted.
Below are the life stage events listed in this policy, for which you can increase your sum assured. However, do remember that these events must occur within the policy period.
- Marriage-You can increase by additional sum assured of 50%, but subject to additional maximum sum assured of to Rs.50, 00,000.
- Birth of 1st Child-You can increase by additional sum assured of 25%, but subject to additional maximum sum assured of Rs.25, 00,000.
- Birth of 2nd Child-You can increase by additional sum assured of 25%, but subject to additional maximum sum assured of Rs.25, 00,000.
Below are few conditions attached to this particular feature, if you are planning to opt during your life stage.
- Your premium will be recalculated based on the additional sum assured you opted.
- You must opt this to increase in sum assured option within 6 months period from the date of the event.
- Your age must be within 45 years while choosing this additional sum assured feature.
- This feature is available only for regular premium policies but not to single premium or limited premium policies.
- No medical test during this lifetime event while increasing the sum assured.
Reduce the Additional Sum Assured
As I said above once your financial goals are met towards, the above said life stage event and if you feel that there no more larger insurance cover required after 45 years of age, then you have the option to go back to the original sum assured you opted. If you opted this then again the premium will be recalculated for the rest of the period.
What about the premium to HDFC’s existing Click2Protect Plan?
Whether to opt this plan or not?
- You may notice from the above table that, the old HDFC Click2Protect plan is costlier to the HDFC Click2Protect Life Option. Therefore, this is an advantage of going with this plan.
- For extra additional accidental rider the premium looks costlier to normal plan (Notice the change from Rs.9, 024 to Rs.14, 018). Therefore, I felt it bit costlier than choosing standalone accidental insurance.
- Income Option seems cheap, but do remember that they only pay 10% of Sum Assured to your nominee. Rest of 90% will be with them and simply pay it instalment for the next 15 years without adding any return to that amount. So do not be in a mind that it is cheap means best.
- Income plus option (with equal monthly income) seems too good, but it will not take care of inflation. Hence, in my suggestion this option is not good.
- Income plus option with increasing monthly income at 10% is good, but will come with additional premium.
- Overall, I feel this plan unique and opt for those who feel their dependents will not be in a position to manage their money.
- In addition, even if one opts for monthly income, then when you consider current taxation rules, this income flow will be tax-free. Whereas if you opt for a typical term plan and invest in any product like monthly income scheme then there will be possibility of taxation on that income.
- Another unique feature of this plan called Life Stage protection features looks great only if you feel that your health will not be same in future. Because further raise in coverage in this option is without medical examination.
Overall, this product seems to be unique in the Indian Term Insurance industry. If features and budget are very much at your side then go ahead !!!
View Comments
Hi Mr. Basavaraj,
1. Please suggest b/w Max Life vs. AEGON Life. AEGON has very low customer base, is that fine?
2. Recently met BIMAdirect representative during financial planning session at our office. He asks to take Term plan through them at same cost, as they can serve during claims and can act as a single point contact for other insurances like Motor, Accidental etc. Is that suggestible?
3. Will the Insurance companies treat this as a 3rd party intervention for claim settlements or any other problems might be there?
Can you be my Financial advisor?
Krishna-1) Yes
2) I am not sure about this. If the cost is same, then go ahead.
3) No such problems.
Hi Sir,
1. Suggest me b/w ICICI Prudential vs. Max Life.
I'm basically looking into lower premium and good settlement ratio. Please suggest in this regard.
2. I have a basic doubt is there any chance of the Insurance companies being stable for next 50 years?
If i start my policy in Max Life now 2017 and plan for 40 years, is there any guarantee that they will stay in market till the uncertain event happens. Or can any market conditions lead to their shut down?
How does IRDAI control this?
Pallavi-1_ For me both are good but if your concerns is cost then go for Max.
2) They can't wind up their business like that. You no need to worry. If you still have doubt, then refer my post "What if your Insurance Company goes bankrupt?".
Thank you for the information.
Also please suggest is AEGON Life preferable based on Claim settlement ratio?
AEGON is having lowest premium rates among all.
Pallavi-All are good but make sure that to declare all facts properly from your end.
Dear sir I want to buy online term plan. My age is 37 yrs& I want to take it for 21 years.please suggest me reliable plan.
Thank you.
Hemant-Refer my post "Top 5 Best Online Term Insurance Plans in India in 2017".
Hi ,
I am planning to buy HDFC click 2 protect plus term plan with accidental disability,and critical illness. My age is 31 yesrs non smoker.For 1 cr insurance + 50lac disability + 15 lac CI yearly amount is 20000 approx.
Should i take these riders?
If not then from which company I should take critical illness insurance because i have pre hypertension symptoms.
Rishi-Never combine accidental or critical illness insurance with life insurance. You can buy them through general insurers.
which company general insurance you suggest?
Also I read that If i take critical illness insurance from outside then the installment can increase in every 2-3 years but with termplan it is fixed .
Rishi-I can't name any one company particularly as it purely depends on the features you like. Term Plan premium may be fixed, but what about the limited features it offers??
Basuji,
Waiting for your view on HDFC Life Click 2 Protect 3D Plus.
but my birthdate is 1st june. so i have decide to buy term insurance and shorted two policy:
1.Max life Online Term Plan with Future Premium Waiver in case of Critical Illness or Disability rider
with 1 cr SI with 32 years term premium is 7781 Rs.
2.HDFC Life Click 2 Protect 3D Plus with Waiver of Premium on 34 Critical Illnesses with 1 cr SI with 32 years term with premium is 9224.
HDFC covers 34 Critical illness and max life online convers only 11 critical illness.
what you suggest which one is good deal for me?
1.HDFC click 2 protect with 9224 or
2.Max life with 7781?
is it worth to give more 1500 for HDFC Life Click 2 Protect 3D?
Waiting for your reply.
Please advice about HDFC Click 2 Protect Plus 3D, whats difference from old plan, shall we I can go for it.
Rajik-Wait for my next post.
OK will wait for your valuable advice.
Excellent post and so very helpful! In addition to the actual claim, in my death I will always be grateful for posts like these than helped me cover my dependents when Im not around! Thank you for being so honest and unbiased in your review :)
I think the premiums have gone slightly high from the "What about the premium to HDFC’s existing Click2Protect Plan?" table you added. I checked for the same SA and criteria, the yearly premiums have gone up by atleast Rs 1,000.
Demetrius-It may be varied now as the post was written long back.
Hi basavaraj- I've been following your blog for quite sometime and also have read your success story in other links.
Kudos to your job. I have two queries, please clarify.
1. What is your meaning of Emergency funds? How to plan for them?
2. I'm planning for term plan. Plz suggest which is better- Pnb Metlife Meta term plan (or) HDFC Click2Protect Plus?
Pnb Metlife is reliable?
Krishna-1) Emergency fund usually contains the cash which you can use it in case of emergencies without any hassle like withdrawing money from your savings account. It should be around 6-12 months of your committed expenses. Remember that you must use it only in case of emergencies.
2) Both are equally good and bad.
Does Pnb Metlife & HDFC click2 Protect cover suicide?
Krishna-All insurers cover suicide after one year of policy commencement.
Hi Sir,
I already have an LIC Jeevan Saral plan taken 6 years back and continuing (Rs. 12010 paid every year till now). LIC has closed this plan as of now.
After enquiry have come to know that this is a failure plan by LIC.
Please suggest if i can continue with this or close this.
Sharanya-What prompted you to buy this plan? What was your expectation?
Sir- One of my brother (LIC agent) suggested this for me.
The input given to me was if i continue for 31 years term i will get a lumpsum of roughly Rs. 8,94,000/- as per the pamphlet. However in the Bond it says as S.A. Rs. 2,50,000/-
I was not much aware of these plans earlier.
Please suggest how to proceed.
Sharanya-Ask your brother about bonus rates he considered to arrive at this maturity value.
Is the LIC Jeevan Saral a better policy or not?
Sharanya-In my view a WORST.
Hi Basavaraj- Many thanks for your honest suggestion.
Could you please also provide a better clarity on its disadvantages. I'm sincerely lack information on this.
Sharanya-There is a limitation in sum insured, and lot of features a simple one is like kids education expenses when you are bed ridden.
Correction in my previous comments. The term is actually 21 years & not 31 years.
Hi Sir,
I'm Uttam, 29 years old looking for Life Term plans. I have read few of your replies above and your responses are very informative. Please clarify my queries below.
1. Could you please clarify your opinion of excluding Riders (Accidental and Disability) in the term plan and go for General insurance. Any reason for this?
2. Is it good to go for Lump Sum settlement (or) partial Lump Sum with Income options?
I understand it is definitely my choice but you have any second thoughts?
3a. The final settlement amount received by the Nominee will be taxable?
3b. Is this taxation anything related to if the Nominee is working?
3c. I believe the income vested from the investment of Lump sum is taxable. E.g. Fixed Deposits done on the Lump Sum.
4. What are the prime differences b/w Online and Offline term plan other than the Premium amount variation. Does it play any role during Claim Settlement process.
5. If i go for Online policy does Insurance company do a next round verification to ensure the authenticity/ whether the documents provided by me are sufficient?
I'm specifically asking this because whether the Insurance company reject claims during settlement period stating the required documents are not provided (or) the information provided in the uploaded documents is not sufficient (or) incorrect document uploads done.
6. What are the common issues (Claim rejection scenarios) though accurate information is shared with the Insurer where special care need to be taken?
7. I have a plan to take 1 crore SA. Can i take a two 50 Lakhs plans. Will that be anyway problematic in future?
Uttam-1) Because riders have limited features. Standalone products comes with many more features.
2) Lumpsum
3) It is purely tax-free.
4) No difference other than premium amount.
5) Once the policy issued, then they can't reject the claim stating documents NOT provided. It is their responsibility to collect the documents before issuing the policy. However, if information provided by you are incorrect, then whether it is online or offline product, insurers have rights to reject claim.
6) There are million reasons for a person to die and same way million reasons for claim rejection.
7) Problematic to your nominees. Because they have to run behind two insurers to get claim settled. Other than that, there is no logic in splitting.
Hi Basavaraj,
Thanks for your useful insights.
Also please clarify what are "Renewable policies". Is this different from policies providing "Life Stage" option.
E.g. Life Stage option in Pnb MetLife.
Uttam-Where you heard about such policies?
Basavaraj- I beleive i have seen in some blog. Please ignore if that is not related to this context.
Uttam-OK.